H.B. No. 1492
 
 
 
 
  relating to the creation of the Montgomery County Municipal Utility
  District No. 140; granting a limited power of eminent domain;
  providing authority to issue bonds; providing authority to impose
  assessments, fees, and taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 6, Special District Local Laws
  Code, is amended by adding Chapter 8425 to read as follows:
  CHAPTER 8425.  MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
  NO. 140
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8425.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Director" means a board member.
               (4)  "District" means the Montgomery County  Municipal
  Utility District No. 140.
         Sec. 8425.002.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 8425.003.  CONFIRMATION AND DIRECTORS' ELECTION
  REQUIRED.  The temporary directors shall hold an election to
  confirm the creation of the district and to elect five permanent
  directors as provided by Section 49.102, Water Code.
         Sec. 8425.004.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section 8425.003
  until each municipality in whose corporate limits or
  extraterritorial jurisdiction the district is located has
  consented by ordinance or resolution to the creation of the
  district and to the inclusion of land in the district.
         Sec. 8425.005.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)  
  The district is created to serve a public purpose and benefit.
         (b)  The district is created to accomplish the purposes of:
               (1)  a municipal utility district as provided by
  general law and Section 59, Article XVI, Texas Constitution; and
               (2)  Section 52, Article III, Texas Constitution, that
  relate to the construction, acquisition, improvement, operation,
  or maintenance of macadamized, graveled, or paved roads, or
  improvements, including storm drainage, in aid of those roads.
         Sec. 8425.006.  INITIAL DISTRICT TERRITORY.  (a)  The
  district is initially composed of the territory described by
  Section 2 of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure.  A mistake made in the
  field notes or in copying the field notes in the legislative process
  does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  right to impose a tax; or
               (4)  legality or operation.
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 8425.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 8425.052, directors serve
  staggered four-year terms.
         Sec. 8425.052.  TEMPORARY DIRECTORS.  (a)  On or after the
  effective date of the Act enacting this chapter, the owner or owners
  of a majority of the assessed value of the real property in the
  district may submit a petition to the commission requesting that
  the commission appoint as temporary directors the five persons
  named in the petition.  The commission shall appoint as temporary
  directors the five persons named in the petition.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 8425.003; or
               (2)  the fourth anniversary of the effective date of
  the Act enacting this chapter.
         (c)  If permanent directors have not been elected under
  Section 8425.003 and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (d) to serve terms that
  expire on the earlier of:
               (1)  the date permanent directors are elected under
  Section 8425.003; or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (d)  If Subsection (c) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  may submit a petition to the commission requesting that the
  commission appoint as successor temporary directors the five
  persons named in the petition.  The commission shall appoint as
  successor temporary directors the five persons named in the
  petition.
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8425.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 8425.102.  MUNICIPAL UTILITY DISTRICT POWERS AND
  DUTIES.  The district has the powers and duties provided by the
  general law of this state, including Chapters 49 and 54, Water Code,
  applicable to municipal utility districts created under Section 59,
  Article XVI, Texas Constitution.
         Sec. 8425.103.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
  OR RESOLUTION.  The district shall comply with all applicable
  requirements of any ordinance or resolution that is adopted under
  Section 54.016 or 54.0165, Water Code, and that consents to the
  creation of the district or to the inclusion of land in the
  district.
         Sec. 8425.104.  AUTHORITY FOR ROAD PROJECTS. Under Section
  52, Article III, Texas Constitution, the district may design,
  acquire, construct, finance, issue bonds for, improve, operate,
  maintain, and convey to this state, a county, or a municipality for
  operation and maintenance macadamized, graveled, or paved roads, or
  improvements, including storm drainage, in aid of those roads.
         Sec. 8425.105.  ROAD STANDARDS AND REQUIREMENTS. (a)  A road
  project must meet all applicable construction standards, zoning and
  subdivision requirements, and regulations of each municipality in
  whose corporate limits or extraterritorial jurisdiction the road
  project is located.
         (b)  If a road project is not located in the corporate limits
  or extraterritorial jurisdiction of a municipality, the road
  project must meet all applicable construction standards,
  subdivision requirements, and regulations of each county in which
  the road project is located.
         (c)  If the state will maintain and operate the road, the
  Texas Transportation Commission must approve the plans and
  specifications of the road project.
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 8425.151.  ELECTIONS REGARDING TAXES OR BONDS. (a) The
  district may issue, without an election, bonds and other
  obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 8425.153.
         (b)  The district must hold an election in the manner
  provided by Chapters 49 and 54, Water Code, to obtain voter approval
  before the district may impose an ad valorem tax or issue bonds
  payable from ad valorem taxes.
         (c)  The district may not issue bonds payable from ad valorem
  taxes to finance a road project unless the issuance is approved by a
  vote of a two-thirds majority of the district voters voting at an
  election held for that purpose.
         Sec. 8425.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 8425.151, the district
  may impose an operation and maintenance tax on taxable property in
  the district in accordance with Section 49.107, Water Code.
         (b)  The board shall determine the tax rate.  The rate may not
  exceed the rate approved at the election.
         Sec. 8425.153.  CONTRACT TAXES.  (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
         Sec. 8425.154.  DIVISION OF DISTRICT.  (a)  The district may
  be divided into two or more new districts only if:
               (1)  the district has no outstanding bonded debt;
               (2)  the district is not imposing ad valorem taxes; and
               (3)  the requirement of Subsection (i) is satisfied.
         (b)  This chapter applies to any new district created by the
  division of the district, and a new district has all the powers and
  duties of the district.
         (c)  Any new district created by the division of the district
  may not, at the time the new district is created, contain any land
  outside the area described by Section 2 of the Act creating this
  chapter.
         (d)  The board, on its own motion or on receipt of a petition
  signed by the owner or owners of a majority of the assessed value of
  the real property in the district, may adopt an order dividing the
  district.
         (e)  The board may adopt an order dividing the district
  before or after the date the board holds an election under Section
  8425.151 to authorize the district's bonds.
         (f)  An order dividing the district shall:
               (1)  name each new district;
               (2)  include the metes and bounds description of the
  territory of each new district;
               (3)  appoint temporary directors for each new district;
  and
               (4)  provide for the division of assets and liabilities
  between or among the new districts.
         (g)  On or before the 30th day after the date of adoption of
  an order dividing the district, the district shall file the order
  with the Texas Commission on Environmental Quality and record the
  order in the real property records of each county in which the
  district is located.
         (h)  Any new district created by the division of the district
  shall hold a confirmation and directors' election as required by
  Section 8425.003.
         (i)  If the district is located wholly or partly in the
  corporate limits or the extraterritorial jurisdiction of a
  municipality, the district may not divide under this subchapter
  unless the municipality by resolution or ordinance consents to the
  division of the district.
         (j)  Any new district created by the division of the district
  must hold an election as required by this chapter to obtain voter
  approval before the district may impose a maintenance tax or issue
  bonds payable wholly or partly from ad valorem taxes.
  SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
         Sec. 8425.201.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS.  The district may issue bonds or other obligations
  payable wholly or partly from ad valorem taxes, impact fees,
  revenue, contract payments, grants, or other district money, or any
  combination of those sources, to pay for any authorized district
  purpose.
         Sec. 8425.202.  TAXES FOR BONDS.  At the time the district
  issues bonds payable wholly or partly from ad valorem taxes, the
  board shall provide for the annual imposition of a continuing
  direct ad valorem tax, without limit as to rate or amount, while all
  or part of the bonds are outstanding as required and in the manner
  provided by Sections 54.601 and 54.602, Water Code.
         Sec. 8425.203.  BONDS FOR ROAD PROJECTS. At the time of
  issuance, the total principal amount of bonds or other obligations
  issued or incurred to finance road projects and payable from ad
  valorem taxes may not exceed one-fourth of the assessed value of the
  real property in the district.
         SECTION 2.  The Montgomery County Municipal Utility District
  No. 140 initially includes all the territory contained in the
  following area:
         BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND CONTAINING
  1207.52 ACRES OF LAND SITUATED IN THE WILLIAM VINCE SURVEY,
  ABSTRACT No. 581, MONTGOMERY COUNTY, TEXAS, AND SAME BEING ALL OF A
  CALLED 906.6 ACRE TRACT AS RECORDED IN VOLUME 593, PAGE 232, DEED
  RECORDS MONTGOMERY COUNTY, TEXAS, ALL OF A CALLED 152.5 ACRE TRACT
  AS RECORDED IN VOLUME 1106, PAGE 729 DEED RECORDS MONTGOMERY
  COUNTY, TEXAS AND ALL OF A CALLED 152.5 ACRE TRACT AS RECORDED IN
  VOLUME 467, PAGE 617 DEED RECORDS MONTGOMERY COUNTY, TEXAS; SAID
  1207.52 ACRE TRACT BEING THE SAME CALLED 1207.816 ACRE TRACT AS
  RECORDED IN FILM CODE No. 370-00-1195 REAL PROPERTY RECORDS
  MONTGOMERY COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED BY
  METES AND BOUNDS AS FOLLOWS, TO-WIT:
         BEGINNING at a fence corner found for an interior corner of a
  called 1656 acre tract as recorded in Montgomery County Clerk's
  File No. 9521239, same being the northeast corner of said 906.6 acre
  tract, and this herein described tract;
         THENCE South 20 degrees 59 minutes 02 seconds East, a
  distance of 8513.69 feet with the east line of said William Vince
  Survey, same being the west line of the B.B.B. and C. R.R. Co.
  Survey, Abstract No. 112, and the west line of said 1656 acre tract,
  to a 5/8 inch iron rod found in the north margin of a 170 foot wide
  drainage easement as recorded in Montgomery County Clerk's File No.
  9519948 for the southeast corner of said 906.6 acre tract and this
  herein described tract;
         THENCE South 89 degrees 52 minutes 51 seconds West, a
  distance of 7796.46 feet with the south line of said William Vince
  Survey, same being the north line of the George Mason Survey,
  Abstract No. 341 and said 170 wide drainage easement to a 5/8 inch
  iron rod set in the east bank of the San Jacinto River (West Fork)
  for the southwest corner of said 906.6 acre tract and this herein
  described tract;
         THENCE along the east bank of said San Jacinto River with the
  following meanders:
         THENCE North 11 degrees 49 minutes 12 seconds East, a
  distance of 380.67 feet;
         THENCE North 01 degrees 16 minutes 09 seconds West, a
  distance of 394.82 feet;
         THENCE North 23 degrees 09 minutes 19 seconds West, a
  distance of 960.49 feet;
         THENCE North 04 degrees 50 minutes 29 seconds West, a
  distance of 412.43 feet to a 5/8 inch iron rod set on the east bank
  of said San Jacinto River, for the southwest corner of a called 250
  acre tract as recorded in Volume 969, Page 543 Deed Records
  Montgomery County, Texas, and same the upper southwest corner of
  this herein described tract;
         THENCE South 88 degrees 25 minutes 24 seconds East, a
  distance of 1039.87 feet to a 3 inch iron pipe found for the
  southeast corner of said 250 acre tract, the southwest corner of
  said 152.5 acre tract as recorded in Volume 467, Page 617 Deed
  Records Montgomery County, Texas, and same being an interior corner
  of this herein described tract;
         THENCE North 00 degrees 50 minutes 54 seconds East, a
  distance of 4030.78 feet to a 3 inch iron pipe found for the
  northeast corner of said 250 acre tract, the northwest corner of
  said 152.5 acre tract, and same being an interior corner of this
  herein described tract;
         THENCE South 89 degrees 51 minutes 21 seconds West, a
  distance of 3693.92 feet to a 5/8 inch iron rod set on the east bank
  of said San Jacinto River for the northwest corner of said 250 acre
  tract and same being the lower northwest corner of this herein
  described tract;
         THENCE along the east bank of said San Jacinto River with the
  following meanders:
         THENCE North 21 degrees 09 minutes 03 seconds East, a
  distance of 471.62 feet;
         THENCE North 03 degrees 09 minutes 38 seconds East, a
  distance of 208.42 feet;
         THENCE North 11 degrees 23 minutes 43 seconds West, a
  distance of 330.30 feet;
         THENCE North 07 degrees 42 minutes 59 seconds West, a
  distance of 240.75 feet;
         THENCE North 24 degrees 03 minutes 52 seconds West, a
  distance of 409.87 feet;
         THENCE North 26 degrees 49 minutes 19 seconds West, a
  distance of 335.54 feet to a 5/8 inch iron rod set on the east bank
  of said San Jacinto River for the northwest corner of said 906.6
  acre tract, same being the northwest corner of this herein
  described tract;
         THENCE North 89 degrees 48 minutes 05 seconds East, with the
  north line of said William Vince Survey, same being the south line
  of the Allen Vince Survey, Abstract No. 52, the south line of a
  called 92.181 acre tract as recorded in Montgomery County Clerk's
  File No. 2002-091442, the south line of a called 55.08 acre tract as
  recorded in Montgomery County Clerk's File No. 8337280, the south
  line of the Wiatt Anderson Survey, Abstract No. 53, the south line
  of a called 140.68 acre tract as recorded in Montgomery County
  Clerk's File No. 8337280, the south line of Porter Heights, Section
  1, as recorded in Volume 5, Page 339 Map Records Montgomery County,
  Texas, and the south line of Porter Heights, Section 2, as recorded
  in Volume 7, Page 259 Map Records Montgomery County, Texas a
  distance of 7920.14 feet to the PLACE OF BEGINNING and containing
  1207.52 acres.
         SECTION 3.  (a)  The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished
  under Section 59, Article XVI, Texas Constitution, and Chapter 313,
  Government Code.
         (b)  The governor, one of the required recipients, has
  submitted the notice and Act to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor, the
  lieutenant governor, and the speaker of the house of
  representatives within the required time.
         (d)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act are fulfilled
  and accomplished.
         SECTION 4.  (a)  If this Act does not receive a two-thirds
  vote of all the members elected to each house, Subchapter C, Chapter
  8425, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 8425.106 to read as follows:
         Sec. 8425.106.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (b)  This section is not intended to be an expression of a
  legislative interpretation of the requirements of Section 17(c),
  Article I, Texas Constitution.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1492 was passed by the House on May 2,
  2013, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1492 was passed by the Senate on May
  17, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor